PODAR MILLS LIMITED Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) BY the order under appeal the learned Single Judge, upon the Notice of Motion taken out by the plaintiffs, appointed the Court Receiver of immovable property at Jaipur belonging to the 1st defendants and of goods, stocks machineries and moveables therein and of book-debts. He directed the Court Receiver to appoint the 1st defendants his agents in respect of the machinery, fittings, fixtures and immovable property at Jaipur on such terms and Conditions as he thought proper. Further, he gave liberty to the Court Receiver to sell the machines and the moveables and retain the sale proceeds with himself in the event that the 1st defendants were not willing or not in a position to accept the terms of the agency. The 1st defendants are in appeal.

(2.) THE plaintiffs are the State Bank of India. The suit is filed against the 1st defendants for recovery of the sum of Rs. 13,59,49,986. 59 due by the 1st defendants under a cash credit account and the sum of Rs. 1,16,58,682. 59 due under a term loan account and interest thereon. The suit prays for a declaration that the aforementioned sums are secured by a valid and subsisting equitable mortgage in respect of two immoveable properties at Bombay and land admeasuring 35,380 square meters with structures thereon at Jaipur.

(3.) IT is an admitted position that, by reason of the provisions of the Textile Undertakings (Taking Over of Management) Act, 1983, the textile undertakings of the 1st defendants situated at Bombay have been taken over and vest in the Central Government. The only security in the form of immoveable property which is, therefore, available to the plaintiffs is the immoveable property at Jaipur.